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The long time boss of FiatChrysler Automobiles has been replaced by Mike Manley, the head of the corporation's Jeep division, with immediate effect.

Michael Manley, who has replaced Sergio Marchionne as chief of Fiat Chrysler (FCA) after the latter became seriously ill following complications from shoulder surgery, was previously head of the group's Jeep brand, for which he managed to push sales through the one-million mark previous year.

Marchionne had stated his intention to retire in 2019, but his exit a full year earlier and the tone of various statements released by FCA indicate that the former CEO's health may be in steep decline.

Marchionne was appointed as Fiat Auto's CEO in 2004, and engineered the company's takeover of Chrysler in 2009, after the American company entered a government-backed bankruptcy filing. Ferrari, which appointed Philip Morris International veteran Louis Camilleri as its CEO, makes its quarterly presentation on August 1.

This has also prompted succession plans at sportscar maker Ferrari and truck and tractor maker CNH Industrial, spun off from FCA in recent years. He has also been replaced as chairman and CEO of Ferrari.

La Gazzetta dello Sport said Marchionne has been in a hospital in Zurich for over three weeks, due to complications following shoulder surgery.

In a statement, John Elkann - the Chairman of the Exor investment group and the heir to the Agnelli family - said "I am profoundly saddened to learn of Sergio's state of health".

Marchionne will also be remembered for his unapologetically blunt approach to both management and addressing the media, as well as his outspoken opinions regarding the automotive industry.

Fiat Chrysler isn't offering many details. Those brands were expected to account for 80 percent of revenues by 2022, compared to 65 percent now.

On Friday, FCA denied a report by Italian website Lettera43 that Elkann had summoned top executives to a meeting on Saturday in order to reassign Marchionne's responsibilities.

Marchionne took over as president of Ferrari in 2014 from Luca Di Montezemolo, who served more than 20 years in the role. The boards of the companies met today to name successors, with FCA having already confirmed Marchionne's replacement.

The Ferrari racing team now leads the drivers' and constructors' championship this year and could end four years of Mercedes dominance.